Ambac Financial Group Inc. (ABK) – Bonding Out
Major bond insurer Ambac Financial Group Inc. (ABK) has lost money for three straight quarters and may be forced to raise more capital. Its stock is down 43% and the $1.66 billion loss raises questions about its "AAA" credit rating. If trends like this continue, it is going to have to go back to the markets very soon. The company's net worth is dwindling as it is forced to write down bad assets linked to sub-prime mortgages. It is important to look at the net worth of a company like Ambac because a low net worth will cause difficulties in…